Barbara, a purchasing agent for UTA, was fired for good reason. Being angry about her dismissal, she calls one of UTA's suppliers and orders 1,000 purple widgets UTA does not need. If UTA, the principal, is held liable for this transaction, it is because Barbara had:

Question

Quizplus · Accepted Answer

Barbara did not have actual authority (explicitly given by UTA) nor implied authority (authority that is reasonably necessary to carry out her duties). However, she may have had apparent authority, as her position as a purchasing agent may have led the supplier to believe that she had the authority to place orders on behalf of UTA. Therefore, UTA may be held liable for the transaction under the doctrine of apparent authority.

Barbara, a Purchasing Agent for UTA, Was Fired for Good